BIT Mining Limited Announces Unaudited Financial Results for the Fourth Quarter and Full Year ended December 31, 2024

PR Newswire

AKRON, Ohio, Feb. 28, 2025

AKRON, Ohio, Feb. 28, 2025 /PRNewswire/ -- BIT Mining Limited $(BTCM)$ ("BIT Mining," "the Company," "we," "us," or "our company"), a leading technology-driven cryptocurrency mining company, today reported its unaudited financial results for the fourth quarter ended December 31, 2024.

On December 9, 2024, the Company completed the first closing of acquisition of cryptocurrency mining data centers and Bitcoin ("BTC") mining machines in Ethiopia. After the first closing of acquisition, the Company acquired 51% equity interests in a cryptocurrency mining data center in Ethiopia (the "Ethiopia data center"). The acquisition of the Ethiopia data center represents a development strategy to focus on data center globally and has a major effect on the Company's results of operations.

Xianfeng Yang, Chief Executive Officer of BIT Mining, commented, "We are pleased to present robust and growth-oriented financial results for the fourth quarter. Throughout this period, we have implemented a range of initiatives to enhance operational efficiency and continuously refine our business structure, all of which have produced favorable outcomes. We successfully completed the first closing of the Ethiopia data center acquisition in December of 2024. The remaining mining facilities under construction are on track to be operational by mid second quarter of 2025, and the mining equipments we have procured will soon be delivered to the site. These advancements are expected to generate stronger, more stable revenue streams moving forward. We are confident in our future trajectory and remain fully committed to pioneering new opportunities that will create lasting value for our shareholders."

Fourth Quarter 2024 Highlights for Continuing Operations

   -- Revenues were US$8.8 million for the fourth quarter of 2024, representing 
      a decrease of US$1.6 million from US$10.4 million for the fourth quarter 
      of 2023, and an increase of US$4.0 million from US$4.8 million for the 
      third quarter of 2024. 
 
   -- Operating loss was US$2.5 million for the fourth quarter of 2024, 
      representing a significant decrease of US$11.8 million from US$14.3 
      million for the fourth quarter of 2023, and a decrease of US$2.3 million 
      from US$4.8 million for the third quarter of 2024. 
 
   -- Non-GAAP operating loss1 was US$2.3 million for the fourth quarter of 
      2024, compared with non-GAAP operating loss of US$4.0 million for the 
      fourth quarter of 2023, and non-GAAP operating loss of US$4.8 million for 
      the third quarter of 2024. 
 
   -- Net loss attributable to BIT Mining was US$2.1 million for the fourth 
      quarter of 2024, compared with net loss attributable to BIT Mining of 
      US$15.5 million for the fourth quarter of 2023, and net loss attributable 
      to BIT Mining of US$4.8 million for the third quarter of 2024. 
 
   -- Non-GAAP net loss1 attributable to BIT Mining was US$2.0 million for the 
      fourth quarter of 2024, compared with non-GAAP net loss attributable to 
      BIT Mining of US$4.4 million for the fourth quarter of 2023, and non-GAAP 
      net loss attributable to BIT Mining of US$4.8 million for the third 
      quarter of 2024. 
 
   -- Basic and diluted losses per American Depositary Share ("ADS")2 
      attributable to BIT Mining Limited including from continuing operations 
      and discontinued operations for the fourth quarter of 2024 were US$0.16. 
 
   -- Non-GAAP basic and diluted losses per ADS2 attributable to BIT Mining 
      Limited including from continuing operations and discontinued operations 
      for the fourth quarter of 2024 were US$0.16. 

Full Year 2024 Highlights for Continuing Operations

   -- Revenues were US$32.9 million for the full year 2024, compared with 
      revenues of US$43.1 million for the full year 2023. 
 
   -- Operating loss was US$7.8 million for the full year 2024, compared with 
      operating loss of US$25.2 million for the full year 2023. 
 
   -- Non-GAAP operating loss1 was US$6.6 million for the full year 2024, 
      compared with non-GAAP operating loss of US$14.2 million for the full 
      year 2023. 
 
   -- Net loss attributable to BIT Mining was US$6.9 million for the full year 
      2024, compared with net loss attributable to BIT Mining of US$25.4 
      million for the full year 2023. 
 
   -- Non-GAAP net loss1 attributable to BIT Mining was US$6.1 million for the 
      full year 2024, compared with non-GAAP net loss attributable to BIT 
      Mining of US$13.5 million for the full year 2023. 
 
   -- Basic and diluted earnings per ADS2 attributable to BIT Mining Limited 
      including from continuing operations and discontinued operations for the 
      full year 2024 were US$1.03. 
 
   -- Non-GAAP basic and diluted earnings per ADS2 attributable to BIT Mining 
      Limited including from continuing operations and discontinued operations 
      for the full year 2024 were US$1.09. 

Full Year 2024 Highlights for Discontinued Operations

   -- Net income from discontinued operations, net of applicable income taxes 
      was US$18.9 million for the full year 2024, compared with net loss from 
      discontinued operations, net of applicable income taxes of US$3.3 million 
      for the full year 2023. The year-over-year increase of US$22.2 million 
      was mainly attributable to the gain on disposal of discontinued 
      operations, net of applicable income taxes of US$18.7 million for the 
      full year 2024. 
 
(1) Non-GAAP financial measures exclude the impact of share-based compensation 
expenses, legal contingencies, changes in gain from short-term investments, 
gain from disposal of long-term investments, impairment of long-term 
investments and changes in fair value of derivative instruments. 
Reconciliations of non-GAAP financial measures to U.S. GAAP financial measures 
are set forth in the table at the end of this release. 
(2) American Depositary Shares, which are traded on the NYSE. Each ADS 
represents one hundred Class A ordinary shares of the Company. 
 

Fourth Quarter 2024 Financial Results for Continuing Operations

Revenues

Revenues were mainly comprised of US$5.0 million from the self-mining business and US$3.8 million from the data center business.

Self-mining

As of today, the total hash rate capacity of our DOGE/LTC mining machines in operation is approximately 13,793.00 GH/s. For the three months ended December 31, 2024, we produced 16.1 million DOGE and 4,578 LTC from our DOGE/LTC cryptocurrency mining operations and recognized revenue of approximately US$4.5 million.

Considerable uncertainty persists in the market despite the recent modest recovery and growth in cryptocurrency asset prices. Facing this current environment, we remain determined to improve our quality and efficiency. As of today, the total hash rate capacity of our BTC mining machines in operation is approximately 395.00 PH/s. For the three months ended December 31, 2024, we produced 3.16 BTC from our BTC cryptocurrency mining operations and recognized revenue of approximately US$0.3 million. Cryptocurrency mining revenue from other cryptocurrencies, such as ETC, BEL, JKC, PEP and LKY, totaled approximately US$0.2 million.

Data Center Operation

During the fourth quarter of 2024, our 82.5 megawatt space (the "82.5 Megawatt Space") at the Ohio Mining Site recognized approximately $3.8 million in service fee revenue, representing an increase of US$2.1 million compared with the third quarter of 2024, which was primarily due to the increase in new customers leading to an increase in electricity consumption.

Overall

Revenues were US$8.8 million for the fourth quarter of 2024, representing a decrease of US$1.6 million, or 15.4%, from US$10.4 million for the fourth quarter of 2023, and an increase of US$4.0 million, or 83.3%, from US$4.8 million for the third quarter of 2024. The year-over-year decrease was mainly attributable to higher computing power of the whole network in the fourth quarter of 2024 compared with the computing power in the fourth quarter of 2023, resulting in an increased difficulty in cryptocurrency mining activities. The sequential increase was mainly attributable to the sharp increase in cryptocurrency prices.

Operating Costs and Expenses

Operating costs and expenses were US$12.9 million for the fourth quarter of 2024, representing a decrease of US$0.8 million, or 5.8%, from US$13.7 million for the fourth quarter of 2023, and an increase of US$3.9 million, or 43.3%, from US$9.0 million for the third quarter of 2024.

Cost of revenue was US$8.5 million for the fourth quarter of 2024, representing a decrease of US$1.3 million, or 13.3%, from US$9.8 million for the fourth quarter of 2023, and an increase of US$2.1 million, or 32.8%, from US$6.4 million for the third quarter of 2024. The year-over-year decrease was mainly attributable to the (i) decrease of US$0.9 million in hosting fee due to the termination of cooperation between us and a third party data center in Texas; and (ii) decrease of US$0.6 million in salary caused by staff turnover and reduced overseas deployment subsidies. The sequential increase was mainly attributable to the increase in electricity consumption caused by the new customers and the depreciation of the newly purchased mining machines in the fourth quarter of 2024. Cost of revenue was comprised of the direct cost of revenue of US$5.8 million and depreciation and amortization expenses of US$2.7 million. The direct cost of revenue mainly included direct costs relating to (i) the cryptocurrency mining business of US$0.1 million, and (ii) the data center business of US$5.7 million.

Sales and marketing expenses were US$0.01 million for the fourth quarter of 2024, compared with US$0.03 million for the fourth quarter of 2023 and US$0.01 million for the third quarter of 2024.

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